HOW TO MANAGE RISK WHEN ENGAGING WITH THIRD-PARTY OUTSOURCERS
Businesses across different industries are being shaped by digital technology. For financial services and banks, London’s position at the forefront of global finance is being threatened by a lack of investment in talent, technology and innovation, according to a report from Level39.
Outsourcing is a strategic decision for a bank to strengthen its digital capabilities by allocating investment and shifting its focus into new technologies which allow it to deliver enhanced customer delivery. The global Banking & Financial Services Business Process Outsourcing sector has a forecasted growth rate (CAGR) of 6.8 percent from 2016 to 2020. This market growth is being largely driven by the increased adoption of technology and automation through partnerships.
When working with outsourcers, the conversation typically steers toward the associated risks of partnering with outsourcers, in terms of compliance, regulation, cost controls or transparency. However, we should be flipping this on its head, and asking how outsourcing can help to manage risks in banks, whether that is the threats associated with poor customer service, processing errors or technology outages.
When done right, outsourcing reduces risk as it can result in improved compliance, greater transparency of performance, higher productivity, increased cost savings and positive strategic outcomes.
Apr-Jun 2018 Issue
Intelenet Global Services